Horizon Construction Development Limited (the "Company") announced that its revenue and net profit maintained rapid growth in 3Q23. As construction activities were booming in the third quarter of the year, the market demand for equipment leasing was strong. With the increase of the Company's equipment scale, the revenue in 3Q23 continued to grow. Average utilization rate and rental prices of the Company's operation equipment have increased in 3Q23, which may improve the Company's gross profit margin.

The Company's equipment scale further grew. As at the end of 30 September 2023, the Company has further expanded the size of the equipment fleet of aerial work platforms, with the total number reaching approximately 175,000 units. The volumes of neo-excavation support systems and neo-formwork systems were approximately 1.53 million tons and approximately 650,000 tons, respectively, as at the end of 30 September 2023. We believe the market demand for aerial work platforms is strong, and the increase of the size of aerial work platforms is the main driver of the Company's business development.

The platform business may maintain rapid growth. The Company actively explored the asset-light operation model, improved the efficiency of resource allocation in the industry, and fully met the downstream needs. Although the proportion of revenue from platform and other services was relatively low, we believe that the Company's advantages in operations will enable the platform services to continue to grow rapidly. The Company will continue to balance the proportion of self-owned assets and operating third-party assets to achieve a better development.

We are optimistic about the Company's performance in 2H23. We believe that the effect of China's macro policy is gradually emerging. The Company's revenue will continue to grow in 4Q23, and its gross profit margin is expected to recover.